What to Consider When Buying Software in Cloud Marketplaces

In the ever-evolving tech realm, Cloud Marketplaces are reshaping the Software as a Service (SaaS) acquisitions landscape. This guide delves into the realm of SaaS purchases within Cloud Marketplaces.

Whether you’re a seasoned tech professional or an industry newcomer, this guide will equip you with the insights to optimize your approach to software acquisition. Here, you’ll learn the ins and outs of purchasing software from an online marketplace in the contemporary business world.

Read on for an in-depth exploration of Cloud Marketplaces. Or, if you prefer a visual deep dive, watch the podcast episode below. Simply hit play and join us as we unravel the world of SaaS purchases in Cloud Marketplaces.

So, What’s a Software Marketplace?

If you have an iPhone, you’re probably familiar with the subscription management options in your Settings. Here, you can see more than just the Apple services you subscribe to, like Apple TV+ or Apple Music. You can also see anything you’ve subscribed to through the App Store. It’s a convenient way to see everything you’re paying for in one place, allowing you to renew, cancel, and monitor those subscriptions from a single focal point. 

Well, a similar environment exists for buying Software as a Service (SaaS) through Marketplaces. There’s a growing trend where businesses purchase SaaS in Cloud Marketplaces provided by major players like Amazon Web Services, Google Cloud Marketplace, and Microsoft Azure. This paradigm is replacing the traditional model of going to vendors or resellers to shop for software. 

Cloud Marketplaces: Fad or Trend?

According to Tackle’s State of Cloud Marketplaces Report, projections indicate substantial growth. They’re anticipating a solid leap, talking about hitting a respectable $15B in Marketplace spending by 2023 and then shooting up to an eye-popping $100B by 2026.  

With such potential on the horizon, it’s crucial to understand the implications for your business. If you’re steering a company toward growth, it’s definitely worth paying attention. These Marketplaces are more than just a trend — they’re going to redefine how we handle software. 

The Benefits of Software Marketplace Purchases

Embarking on SaaS acquisitions through Marketplaces unfolds a spectrum of advantages. This process will streamline your procurement strategy and enhance operational efficiency.

• Centralized Invoicing: Picture this – a single point of contact for all your software transactions. With Marketplaces, payment processes are consolidated through one provider, injecting simplicity into what could otherwise be a complex financial situation.
• Vendor Onboarding Simplified: Bid farewell to the hassle of protracted onboarding procedures for new vendors. Harvard Business Review reports that it can take about a month to onboard a new SaaS supplier and up to six months at many larger organizations. Leveraging Marketplaces means saving valuable time and resources, enabling swift integration of new software solutions into your business ecosystem. 
• Discount Programs: Cloud providers often sweeten the deal with enticing discount programs. As your annual spending commitments ascend, so will your potential discounts. Purchasing through Marketplaces simplifies the process and opens doors to more significant cost savings. 
• Budget Utilization: If your company is part of a discount program with predefined spend commitments, delving into Marketplace purchases allows you to tap into existing budget allocations. It’s not just about buying software – it’s about optimizing your budgetary resources. 

Navigating the Marketplace: How It Works

Understanding the ins and outs of procuring software on a Marketplace involves a strategic approach. Breaking it down into several steps makes the process more digestible. Let’s get started. 

App Availability and Compatibility Check

Before diving in, ensure your desired app is up for grabs in the chosen Marketplace. Whether you prefer browsing through your options or seeking advice from your sales representative, confirming app availability is the crucial first step. Then, make sure the app that caught your interest is compatible with your other systems. It’s also a good idea to check that you don’t already have access to software that performs the primary function of the one you’re considering. 

Purchasing Options

Marketplaces cater to a variety of buying preferences. You may be more inclined toward a swift mouse-click purchase. Or, perhaps you prefer a more traditional enterprise transaction facilitated by an Account Executive. Marketplaces will usually accommodate any preference from one end of this spectrum to the other. These flexible options give you a tailored experience that you can adapt to your needs. Take your time, evaluate your options, and select what works best for your business. 

Transaction Process

Once you’ve made your choice, the actual transaction kicks in. Review everything thoroughly before proceeding further, because there are a few more steps to take before committing to the purchase. These include navigating your negotiated terms, pricing discussions, and formalizing Master Service Agreements (MSA). You can typically orchestrate all of this seamlessly through the Marketplace.

Billing and Payment

The final steps involve billing and payment. Your Cloud Provider invoice will become the focal point, and payment will follow the terms you’ve established. This ensures a straightforward financial flow that’s aligned with your business practices. It will also create a transparent and predictable set of costs, so you can plan for upgrades, stay aware of price increases, and be prepared to budget for renewal costs. 

Considerations and Recommendations

As you set sail on the exciting journey of initiating SaaS purchases through a Marketplace, here are some considerations to keep in mind:

Tip #1: Engage with Your Cloud Management Team

Kickstart your marketplace exploration by having a friendly chat with your cloud management team. Dive into the nitty-gritty to grasp who your primary cloud provider is and uncover any existing discount programs they might have up their sleeves. Understanding the lay of the cloud landscape sets the stage for a smoother Marketplace expedition.

Tip #2: Explore Vendors

Think of this as your digital shopping spree. Take some time to stroll through the Marketplace aisles and identify both familiar faces and potential new vendors. Whether it’s a trusted ally or an exciting newcomer, don’t be afraid to seek clarification on the purchasing process. After all, a little window shopping never hurts, especially when it comes to digital goodies for your business.

Tip #3: Consider Traditional Resellers in the Marketplace

Remember the tried-and-true companions on your procurement journey. Traditional resellers like CDW, SHI, and SoftwareOne have entered the Marketplace scene. The beauty here? You get to preserve those existing relationships while tapping into the advantages of Marketplaces. It’s like having your cake and eating it too, but in the business world. Yum! 

Take Advantage of a Cloud Marketplace for Your Software Purchases

Cloud Marketplaces present a significant opportunity for business IT and Procurement teams to streamline their SaaS purchases. Beyond simplifying the buying process, these platforms offer potential cost savings and faster vendor onboarding prospects. To make the most of the opportunities these platforms provide, gain a clear understanding of your spend commitments, leverage each Marketplace benefit, and enjoy exploring vendor offerings in your chosen Cloud Marketplace. 

To discuss your real-life experiences with Cloud Marketplaces or ask questions, reach out to me at ben@zylo.com. Or, shout me out on LinkedIn.